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startup school radio 35 - paul graham

hosted by aaron harris, kat manalac "man-yawl-ik"

episode | transcript


paul graham

interview skills

  • trick for interviews: "if someone asks you a boring question, just answer the interesting one they might have asked and nobody complains"
  • donald rumsfeld is a beast at answering interview questions w/o saying anything he doesn't want to say

on being uncorporate

  • pg was driven to start a business by the poverty of boom/bust of being a freelance programmer
  • never considered joining a corporation
  • "i've never really had a normal job... it's like the idea of eating roadkill"
  • "i'm the last person in the world who'd be suited to being in a big company"

viaweb & online art galleries

  • viaweb started making software to put art galleries online, which no one wanted (that's where "Make something people wants" comes from)
  • everyone was creating online stores with html by hand; they could reuse the art gallery code as an online store builder with some tweaking
  • they thought catalog companies would be the first customers, but it was actually new digital merchants / entrepreneurs
  • the sears catalog was the authoritative xmas gift guide

cs grad school @ harvard & meeting trevor

  • robert was the guy pg bounced ideas off of... got kicked out of harvard / they met when pg was in grad school while programming late at night
  • school is a good place to find cofounders
  • went to harvard thinking he'd do general ai then go into academia
  • robert worked on viaweb but became frustrated that it wasn't done in a month, so pg asked him who's the smartest person in the cs dept: trevor
  • at this point in life, trevor was quite the eccentric, organizing his whole life on notecards
  • trevor went heads down for 2 weeks and rewrote the whole thing in smalltalk... which they didn't end up using... "powerful engine, no rudder"

give customers what they want & do things that don't scale

  • "this was one of those old fashioned startups where we charged users money, so we knew we had to get users"
  • "we were all computer nerds, but i was the least nerdy of the three, so i was the one to call and talk to users"
  • "this is where i learned do things that don't scale... it was only later i realized this was the optimal thing to do"
  • we had to build the stores for end users with our own builder because they wanted a finished store, they didn't want to build a store
  • users (1) didn't think it was going to work; (2) thought the software would be hard to use... this is still the default assumption of many users

the idea and power of dynamic web apps

  • the big incentive for creating software as a service was because they didn't want to have to write code for windows
  • the page could be a ui and generate the pages on the fly (back then this wasn't what hypertext was being used for)
  • sometimes they'd troll users by fixing bug fixes on the fly on the phone and asking the user if they could reproduce the issue after they'd already deployed the hotfix
  • people think they know how users will use the software, but really you have to just watch

do what you want

  • 3 years between starting and getting bought, then robert & pg continued @ yahoo while trevor finished his phd
  • they had made the software to sell it... to get money... "e-commerce wasn't my life's work"
  • "i tell founders: do what you want" - it's okay to just want to make money
  • "we wanted to get bought by yahoo; we flirted with yahoo extensively"
  • ran everything on open source software which wasn't common back then; yahoo was like us but run by cs grad students from stanford
  • didn't like working at yahoo (big co. problems), left after a year
  • startups don't go public now because ceos don't want to deal with public company stuff like worrying about stock price, etc.

back to writing & how to start a startup

  • he didn't want to start another company, so he just started writing code (programming languages) and essays... "i basically went back to my old life"
  • harvard computer club asked him to give a talk so he wrote an essay and talked about how to start a startup... which led to yc
  • steve & alexis from reddit came up to see it from virginia after seeing it on his website
  • startups weren't a hot topic in '04 after the bust in '99
  • "if you wanna raise money, raise money from people that made the money doing startups and then they can give you advice too... it's funny that's what yc turned into"

learning how to be investors & accidentally creating the accelerator batch model

  • yc was a project just because we wanted to do some angel investing and learn how to be investors
  • we didn't have software, we printed out the emails, graded them, and passed them around to each other
  • i advise most startups to zero in on the most urgent problem and figure out how to fix it
  • the original reddit idea was to order fast food on your phone "my mobile menu"
  • yc is not like a school with lectures, it's more like grad school with very customized, situational advice
  • we learned that doing startups in batches had all these advantages that we found by inadvertently applying manufacturing techniques to venture capital

die or get rich & being right by accident

  • in startups there's a bimodal distribution of outcomes: die or get rich
  • "we didn't have a guarantee any of these startups would succeed but it was a sufficiently good bet, which is all you ever get in the startup world"
  • sequoia invested in sam altman in the first batch "12.5% of our first batch is funded by sequoia"
  • early-stage startups are just so much fast-moving chaos "the founder will have to throw a ball without looking and assume the other guy will be out ready to catch it"
  • in retrospect viaweb and yc did so many things right by accident, "the story of my life"
  • "yc was started to learn about how to be investors, not make money... that's why it makes so much money because it wasn't trying to make money"